Mamaearth’s Q2 revenue for the D2C unicorn increased by 21% to Rs 496 crore.
Mamaearth, a digital-first skincare company, reported in its first quarterly result following its bourses listing on November 22 that its profit for the September quarter doubled to Rs 30 crore from the same period the previous year.
During the reviewed quarter, the D2C unicorn’s revenue increased by 21% to Rs 496 crore. The company also revealed that revenue climbed by 33% in the first half of FY24, compared to a median growth of 9% for the FMCG sector.
Mamaearth’s parent company, Honasa, has demonstrated the ability to generate market-beating growth and steadily enhance the company’s profitability portfolio. Varun Alagh, Chairman and CEO of Honasa Consumer, stated, “Our company has grown by 33 percent YoY in H1 FY24, which is 3.8 times the median growth of FCMG companies in India.”
“H1 profit after tax increased by 1,377% to Rs 54 crore, a much faster rate of growth than our revenues. Following Derma Co. and Aqualogica, Dr. Sheths is the fourth brand from the Honasa portfolio to join the Rs 150 crore Club. We’ll keep fulfilling our promises to investors, customers, and our company,” he continued.
Being a consumer brand that prioritises digital platforms, advertising represents one of the company’s largest costs. Its filings show that in the second quarter, advertising expenses increased by 22% to Rs 174 crore.
According to Mamaearth’s red herring prospectus, of the Rs 182 crore that the company plans to use for advertising over the next four years, the majority, or Rs 150 crore, is anticipated to go towards television campaigns.
In addition to its online presence, the business has developed a robust offline distribution network. The offline distribution of Honasa Consumer brands increased by 47% year over year to 1,65,937 retail outlets in September, according to NielsenIQ.